Monday Market Monitor - China - WEEK 30 - Continues to climb

Tranquility prevailed in the Chinese waters last week although the mysterious solitude has bemused experts since it unusually long.

Steel market in China has all through been a happening place. Turnaround in the prices has been avidly anticipated for the past fortnight. The market has been ambivalent with a proclivity for improvement.

After a near washout in Q2 as the demand from all key sectors slackened as the game of up man ship accentuated between the PBOC and market. Most of the planned expenditure on infrastructure and housing was kept in abeyance as the market grappled with runaway inflation and its surgical malady. Astonishingly mills have been on rampaging production touching almost 2 million tonne per day in June exuding a mysterious confidence. Remarkably the stock at all major locations for flat and long products has been maintained within manageable limits all through possibly an outcome of urbanization chugging along.

Nonetheless the major projects viz., 10 million budget housing and infrastructure development are yet take off in full swing. At the same time input cost has been obdurate decimating bottom lines of the mills compelling them to yearn for increasing mark ups. Silhouetted in the background of despondency the moment seems ripe for backlash whipping up buying in H2 to accomplish unfulfilled plan targets.

The market footprints have been guarded gradually creeping as the monsoon abates. Concurrently the global market is portending to unfold buying from the famished quarters of MENA and EU countries after the holidays.

The Chinese Long Product Price Index CLPPI surged by 28 points last week whereas the Chinese Flat Products Index CFPPI has also gone up by 14 points. The overall price index CHISPI inclined by 20 points.

To know more about these indices please visit http://steelprices-china.com/spi_services/spi.html

1. Long products

Billets150*150Q235

Location

CNY

USD

Fujian Province

10

2

Hebei Province

30

5

Jiangsu Province

20

3

Shandong Province

60

9

Shanxi Province

50

8

Tianjin

30

5

Change is on July 29th as compared to 22nd July 2011Change is per tonne

WRC6.5mmCommon

Location

CNY

USD

Changsha

20

3

Chengdu

20

3

Guiyang

40

6

Hangzhou

0

0

Kunming

30

5

Nanjing

50

8

Shanghai

70

11

Urumchi

0

0

Zhengzhou

20

3

Change is on July 29th as compared to 22nd July 2011Change is per tonne

Rebars20mmHRB 400

Location

CNY

USD

Beijing

-10

-2

Changsha

30

5

Chengdu

20

3

Chongqing

20

3

Fuzhou

30

5

Guangzhou

0

0

Guiyang

0

0

Hangzhou

0

0

Harbin

10

2

Hefei

10

2

Jinan

-20

-3

Kunming

30

5

Lanzhou

0

0

Nanchang

0

0

Nanjing

20

3

Shanghai

10

2

Shenyang

10

2

Shijiazhuang

-10

-2

Taiyuan

-20

-3

Tianjin

0

0

Urumchi

0

0

Wuhan

20

3

Xian

50

8

Zhengzhou

20

3

Change is on July 29th as compared to 22nd July 2011Change is per tonne

Angle#5

Location

CNY

USD

Shanghai

50

8

Hangzhou

0

0

Nanjing

20

3

Jinan

0

0

Hefei

0

0

Fuzhou

0

0

Nanchang

0

0

Guangzhou

0

0

Changsha

50

8

Wuhan

0

0

Zhengzhou

0

0

Beijing

30

5

Tianjin

60

9

Shijiazhuang

50

8

Taiyuan

0

0

Shenyang

0

0

Harbin

0

0

Chongqing

0

0

Chengdu

0

0

Kunming

30

5

Xian

0

0

Lanzhou

0

0

Urumchi

0

0

Change is on July 29th as compared to 22nd July 2011Change is per tonne

Channel#16

Location

CNY

USD

Shanghai

20

3

Hangzhou

0

0

Nanjing

20

3

Jinan

0

0

Hefei

0

0

Fuzhou

0

0

Nanchang

0

0

Guangzhou

50

8

Changsha

20

3

Wuhan

0

0

Zhengzhou

0

0

Beijing

20

3

Tianjin

30

5

Shijiazhuang

50

8

Taiyuan

0

0

Shenyang

20

3

Harbin

0

0

Chongqing

0

0

Chengdu

0

0

Kunming

50

8

Xian

0

0

Lanzhou

20

3

Urumchi

0

0

Change is on July 29th as compared to 22nd July 2011Change is per tonne

Beam#25

Location

CNY

USD

Shanghai

20

3

Hangzhou

0

0

Nanjing

20

3

Jinan

0

0

Hefei

0

0

Fuzhou

0

0

Nanchang

0

0

Guangzhou

0

0

Changsha

0

0

Wuhan

50

8

Zhengzhou

0

0

Beijing

20

3

Tianjin

0

0

Shijiazhuang

50

8

Taiyuan

0

0

Shenyang

0

0

Harbin

0

0

Chongqing

0

0

Chengdu

0

0

Kunming

50

8

Xian

0

0

Lanzhou

0

0

Urumchi

0

0

Change is on July 29th as compared to 22nd July 2011Change is per tonne

www.steelprices-china.com is a comprehensive service for tracking real time domestic steel prices and trends in China on daily basis.

The scope of service includes1. Domestic pricing information in China2. Export levels from Turkey, Rotterdam, China, India and Black Sea

The service is specifically designed to assist steel makers, traders, users and others connected with the industry to keep track of real time prices prevailing in the market and thus comprehensively evaluate steel pricing trends in the trend setting region